Emergency Manager Kevyn Orr Will Try To Freeze Detroit Pension Fund | Roland Martin Reports

Emergency Manager Kevyn Orr Will Try To Freeze Detroit Pension Fund

Source: Robert Snell and Christine Ferretti / The Detroit News

Detroit — Emergency Manager Kevyn Orr signaled Wednesday he wants to freeze the city’s General Pension fund Dec. 31 and replace active employee pensions with a plan similar to a 401(k).

Orr’s legal team at Jones Day sent a proposal to the General Fund board Wednesday outlining a plan to freeze future retirement benefits. Orr told The News in June he is considering switching employees to a defined contribution plan.

Retirees would still collect pensions but the move would freeze benefits for current employees and end certain cost-of-living adjustments, according to a copy of the proposal obtained by The News on Thursday.

Any such move would have to be approved by state Treasurer Andy Dillon, who could not immediately be reached for comment.

To read this article in its entirety visit The Detroit News.